- US payrolls rise by 263,000 versus expectations of 250,000.
- Canada: Net change in employment in September 21,000 vs. 20,000.
- The Loonie falls against the dollar, although it reaches new all-time highs against most of its rivals.
- USD/CAD rises towards daily highs amid a stronger dollar.
The USD/CAD rose from 1.3722 to 1.3760, matching daily highs following the September employment reports from Canada and the United States. Both showed better than expected figures. The dollar rose across the board, but so did the loonie, albeit at a slower pace.
Positive reports in Canada and the US.
The official US employment report showed non-farm payrolls rose by 263,000 in September, above the 250,000 expected. The unemployment rate unexpectedly fell from 3.7% to 3.5%.
In Canada, the net change in employment was positive at 21,100 during the month of September, in line with the market consensus. The unemployment rate fell from 5.4% to 5.2%, and the participation rate fell from 64.8% to 64.7%.
The dollar rose after the figures, boosted by higher yields in the United States. The 10-year US yield stands at 3.90%, while the 2-year hit 4.34%, a few points below cycle highs.
Despite the strength of the dollar, so far the USD/CAD remains in the range between 1.3760 and 1.3705, still indecisive. The loonie hit new all-time highs against currencies including the AUD, NZD, GBP and EUR following the report.
Technical levels
Source: Fx Street
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